Allot (ALLT) AI Stock Analysis

• Market Cap: $464.18M
• Dividend Yield: N/A
• Average Volume (3M): 387.85K
• Price to Earnings (P/E): 465.0
• Beta (1Y): 1.63
• Revenue Growth: 7.51%
• EPS Growth: N/A
• Country: US
• Employees: 523
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.10
• Shares Outstanding: 48,452,618
• 10 Day Avg. Volume: 511,764
• 30 Day Avg. Volume: 387,847
• PEG Ratio: 0.43
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 85.50
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 49.55
• 1Y Price Target: $13.50
• Price Target Upside: 42.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $9.50 ▲(0.42% Upside)

Allot's overall stock score is driven by strong earnings call results and a stable financial position, but is tempered by valuation concerns and mixed technical indicators. The company's growth in the CCaaS segment and improved profitability are positive, yet high P/E ratio and competitive challenges in the telco industry present risks.

Positive Factors

Revenue Growth

The return to double-digit revenue growth indicates strong market demand for Allot's solutions, enhancing its competitive position and potential for sustained growth.

Cash Position

A robust cash position with no debt provides Allot with financial flexibility to invest in growth opportunities and weather industry challenges.

CCaaS Segment Growth

Strong growth in the CCaaS segment highlights Allot's successful focus on cybersecurity, a critical and expanding market, supporting long-term revenue streams.

Negative Factors

Profitability Challenges

Negative profit margins indicate operational inefficiencies, which could hinder Allot's ability to sustain growth and improve shareholder returns.

Telco Industry Challenges

Limited telco CapEx spending constrains Allot's growth potential in this key market, necessitating strategic adjustments to maintain competitiveness.

Cash Flow Issues

Inconsistent cash flow generation could impact Allot's ability to fund operations and strategic initiatives, posing a risk to financial stability.

Allot Business Overview & Revenue Model

Company Description

Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.

How the Company Makes Money

Allot generates revenue through a combination of software licenses, subscription services, and professional services. Key revenue streams include the sale of its network security and management solutions, which are offered on a recurring subscription basis, allowing for predictable revenue flows. Additionally, Allot provides professional services such as installation, integration, and ongoing support, which further contribute to its earnings. The company has established significant partnerships with various telecommunications operators and technology providers, enhancing its market presence and driving additional sales through bundled offerings and joint go-to-market strategies.

Allot Financial Statement Overview

Summary

Allot's financial statements present a mixed picture. Strong gross margins and improved revenue growth are offset by ongoing profitability challenges and inconsistent cash flow. The balance sheet is stable with low leverage, but negative returns on equity highlight the need for better profitability.

Income Statement

Allot's income statement shows a mixed performance. The TTM gross profit margin is strong at 70.06%, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing profitability challenges. Revenue growth has improved to 3.33% in the TTM, but historical volatility and negative EBIT margins suggest operational inefficiencies.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low TTM debt-to-equity ratio of 0.06, indicating low leverage. However, the return on equity is negative, pointing to profitability issues. The equity ratio is healthy, suggesting a solid capital structure, but the company needs to improve its return on equity to enhance shareholder value.

Cash Flow

Cash flow analysis reveals positive trends with a significant improvement in free cash flow growth at 25.87% TTM. The operating cash flow to net income ratio is below 1, indicating potential cash generation issues. Despite improvements, the company must focus on sustaining positive cash flow to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.51M	92.19M	93.15M	122.74M	145.60M	135.92M
Gross Profit	68.46M	63.69M	52.69M	82.91M	101.05M	95.84M
EBITDA	7.74M	2.12M	-55.13M	-22.75M	-7.54M	-2.73M
Net Income	1.04M	-5.87M	-62.80M	-32.03M	-15.04M	-9.35M
Balance Sheet
Total Assets	171.72M	139.64M	138.16M	212.95M	203.41M	201.60M
Cash, Cash Equivalents and Short-Term Investments	80.36M	57.86M	53.05M	85.35M	83.97M	98.00M
Total Debt	6.27M	46.34M	41.93M	44.70M	8.25M	4.65M
Total Liabilities	62.20M	89.83M	88.40M	110.98M	77.41M	71.45M
Stockholders Equity	109.52M	49.81M	49.76M	101.97M	126.01M	130.15M
Cash Flow
Free Cash Flow	13.36M	2.71M	-32.23M	-38.21M	-16.01M	-19.81M
Operating Cash Flow	14.62M	4.83M	-29.74M	-32.56M	-8.37M	-12.22M
Investing Cash Flow	-29.91M	-2.88M	31.63M	-6.51M	-6.32M	17.06M
Financing Cash Flow	11.61M	1.00K	0.00	39.66M	2.81M	1.83M

Allot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Positive. The current price of 9.46 is above the 20-day moving average (MA) of 9.09, below the 50-day MA of 9.71, and above the 200-day MA of 7.97, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 61.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLT.

Allot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALLT	54 Neutral	$464.18M	465.05	1.33%	―	7.51%	―
BAND	52 Neutral	$429.13M	―	-3.20%	―	7.42%	34.42%
BLZE	51 Neutral	$263.11M	―	-55.03%	―	15.73%	40.14%
GRRR	48 Neutral	$295.38M	―	―	―	―	―
DFDV	48 Neutral	$251.23M	13.38	56.66%	―	313.35%	―
PDYN	41 Neutral	$224.90M	―	-110.11%	―	-44.07%	25.75%

Allot Corporate Events

Allot Ltd. Reports Strong Q3 2025 Financial Results with 60% SECaaS Growth

On November 20, 2025, Allot Ltd. announced its financial results for the third quarter of 2025, highlighting significant growth and profitability. The company reported a 14% increase in revenues year-over-year, reaching $26.4 million, with SECaaS accounting for 28% of total revenue. The SECaaS annual recurring revenue grew by 60% compared to the previous year. Allot achieved a GAAP operating income of $2.2 million, a turnaround from a loss in the same quarter of 2024, and a non-GAAP operating income of $3.7 million. The company also reported strong operating cash flow and increased its full-year revenue guidance to between $100-103 million, driven by its cybersecurity-first strategy and robust performance in its network intelligence offerings.

Allot Ltd. Announces 2025 Annual General Meeting

On November 10, 2025, Allot Ltd. announced it will hold its Annual General Meeting of Shareholders on December 15, 2025. The meeting will address several key proposals, including amendments to the company’s Articles of Association and the reelection of directors. The outcomes of these proposals could impact the company’s governance structure and operational policies, influencing its strategic direction and stakeholder relations.

Allot Ltd. Schedules Annual General Meeting for December 2025

On November 4, 2025, Allot Ltd. announced it will hold its Annual General Meeting of Shareholders on December 15, 2025, with a record date of October 29, 2025. The meeting will address several key agenda items, including amendments to the company’s Articles of Association, reelection of directors, approval of compensation policies, and the reappointment of its independent public accounting firm. These decisions are expected to impact the company’s governance structure and operational policies, potentially influencing its strategic direction and stakeholder relations.

Allot Ltd. Announces Upcoming Annual General Meeting with Key Governance Changes

On November 4, 2025, Allot Ltd. announced it will hold its Annual General Meeting of Shareholders on December 10, 2025. The agenda includes significant proposals such as amending the Articles of Association to eliminate different classes of board members, reelection of directors, approval of compensation policies, and the reappointment of its independent accounting firm. These changes aim to streamline governance and ensure compliance with the Israel Companies Law, potentially impacting the company’s operational efficiency and stakeholder relations.

Allot Ltd. Reports Financial Growth in Mid-2025

Allot Ltd., a company operating in the technology sector, has released its condensed consolidated financial statements and management’s discussion and analysis for the six months ended June 30, 2025. The report highlights the company’s financial position, showing an increase in total assets from $139.6 million at the end of 2024 to $154.1 million by mid-2025. This growth is attributed to an increase in cash and cash equivalents, trade receivables, and available-for-sale marketable securities. The financial results indicate a positive trajectory for Allot Ltd., suggesting improved operational efficiency and financial health, which could enhance its industry positioning and stakeholder confidence.